Font size
WorksheetsTM111C - Midterm Exam
Total questions: 81
Worksheet time: 2hrs 2mins
What does Admission mean in the context of customs free zones?
Bringing goods out of the Philippine territory
Bringing imported goods directly or through transit into a free zone
Completion of customs formalities to allow goods to enter for consumption
Reduction of duties and taxes
Which document is issued by airlines and international freight forwarders for airfreight and gives the holder or consignee the right to claim delivery at destination?
Bill of Lading (B/L)
Airway Bill (AWB)
Export Declaration
Goods Declaration
Which term refers to the remedy by which a person aggrieved by an action, decision, order, or omission of the Bureau seeks redress before the Bureau, the Secretary of Finance, or competent court?
Assessment
Appeal
Clearance
Flexible Clause
Assessment in customs primarily involves which activity?
Issuing transport instructions to carriers
Determining the amount of duties, taxes, and other charges due on imported and exported goods
Consolidating shipments into a single lot
Authorizing the operation of the Bureau of Customs
Who is an Authorized Economic Operator (AEO) under this Act?
Only the importer accredited by the Tariff Commission
Any entity duly accredited by the Bureau based on WCO standards to promote secure and seamless movement of goods
Only airlines authorized to carry international cargo
Any holder of a professional customs broker license
Which transport document is issued by shipping lines, carriers, and international freight forwarders for water-borne freight and gives the holder or consignee the right to claim delivery at the port of destination?
Goods Declaration
Airway Bill (AWB)
Bill of Lading (B/L)
Export Declaration
Which term simply refers to the Bureau of Customs?
Commission
Carrier
Bureau
Customs Office
Which body is meant when the term Commission is used in these definitions?
Civil Service Commission
Tariff Commission
Securities and Exchange Commission
National Economic and Development Authority
Conditional Importation under the RKC allows which scenario?
Permanent duty-free admission of goods for domestic consumption
Temporary admission with conditional relief from duties and taxes for specific-purpose goods intended for reexportation within a specified period
Immediate destruction of perishable goods at the border
Export of goods without any documentation
Customs Office refers to which of the following?
Any private warehouse storing imported goods
Any customs administrative unit authorized to perform functions under customs and tariff laws
Only the head office of the Bureau of Customs
The Tariff Commission
Which statement best distinguishes a Customs Officer as defined here?
A clerk who performs only manual duties in the Bureau
A person whose duty involves discretion in performing the Bureau’s function; may also be an employee authorized to perform a specific function
An officer of the Philippine National Police assigned to ports
Any elected official overseeing trade
Entry in customs practice involves which action?
Bringing goods out of the Philippine territory
The act, documentation, and process of bringing imported goods into the customs territory, including from free zones
The valuation of goods for duty purposes
Registering as an Authorized Economic Operator
Exportation is defined as which of the following?
The process of transferring goods between free zones
The act, documentation, and process of bringing goods out of Philippine territory
The reduction of import duties and taxes
The completion of customs formalities for consumption
An Export Declaration is primarily a statement indicating what?
The valuation method used for import duties
The procedure to be observed for taking out any exported goods and required particulars
The rights of carriers in transit
The conditions of carriage for air shipments
Which authority is empowered under the Flexible Clause to recommend actions such as adjusting protective tariff rates, establishing quotas or bans, and imposing additional import duty not exceeding ten percent ad valorem?
Tariff Commission
National Economic and Development Authority (NEDA), with the President’s power upon recommendation
Department of Finance
Bureau of Customs
A Foreign Exporter is identified in the law as which of the following?
Any Philippine resident who exports to another country
One whose name appears on documentation attesting to the export of a product to the Philippines regardless of the manufacturer’s name on the invoice
Only the manufacturer of the goods exported to the Philippines
Any freight forwarder handling export cargo
Free Zone refers to what in this context?
Any private bonded warehouse
Special economic zones and freeports registered with the Philippine Economic Zone Authority under specified Republic Acts and similar laws
Only zones created by local governments
Areas outside Philippine jurisdiction
Goods refers to which items under this section?
Only tangible consumer goods
Articles, wares, merchandise, and any other items subject of importation or exportation
Only hazardous materials
Services related to transportation
Importation is defined as which act?
Bringing goods from a foreign territory into Philippine territory for consumption, warehousing, or admission as defined in the Act
The temporary entry of duty-free goods into free zones only
The issuance of export permits
The valuation of goods for tax purposes
Which entity is described as a local intermediary that facilitates transport on behalf of a client without assuming the role of a carrier and can perform services like booking cargo space, preparing documents, and warehousing?
International Freight Forwarder
Freight Forwarder
Carrier
Customs Office
Which term refers to the registration of a goods declaration with the Bureau?
Jurisdictional Control
Lodgement
Reexportation
Release of Goods
Refund
Which term refers to goods liable to perish or that depreciate greatly in value while stored or cannot be kept without great disproportionate expense?
Security Goods
Perishable Goods
Transit Goods
Conditional Imports
Smuggled Goods
What is a Port of Entry as defined in the material?
Any private dock for domestic trade only
A domestic port open to domestic and international trade, including principal ports and subports, and may include an airport of entry
Only the main harbor of the capital city
Any place where customs brokers file entries
The port where goods are finally consumed
Port of Discharge, also called Port of Unloading, refers to which location?
Where the vessel first requests pilotage
Where a vessel, ship, aircraft or train unloads its shipments for dispatch to consignees
Where customs assessments are appealed
Where export permits are issued
Where security bonds are posted
Reexportation means the exportation of which goods?
Goods manufactured domestically
Goods that have been imported
Goods destined for transshipment
Goods under conditional importation only
Goods in free zones only
Which action by the Bureau permits goods undergoing clearance to be placed at the disposal of the party concerned?
Refund
Release of Goods
Tentative Release
Security Issue
Lodgement
Which term covers any form of guaranty, such as a surety bond, cash bond, or irrevocable letter of credit, ensuring satisfaction of an obligation to the Bureau?
Security
Jurisdictional Control
Transit
Taxes
Transshipment
Technical Smuggling most closely involves which activity?
Removing goods from customs control without paying duties
Using fraudulent, falsified, or erroneous declarations of nature, kind, quality, quantity or weight to reduce or avoid prescribed taxes, duties and charges
Bringing in prohibited goods
Reexporting damaged items
Failing to provide a security bond for temporary importation
Transshipment is defined in the material as which process?
Moving goods from one domestic city to another by truck
Transferring goods under customs control from the importing means of transport to the exporting means within the area of one customs office, the office of both importation and exportation
Exporting goods previously imported
Shipping goods directly to a free zone without documents
Dispatching goods from the port of discharge to final consignees
Importation is deemed terminated when which of the following occurs?
The vessel departs the last foreign port
A customs officer inspects the cargo manifest
The duties, taxes and other charges due have been paid or secured to be paid at the port of entry unless the goods are free from such charges or a legal permit for withdrawal has been granted; or when goods free of such charges have legally left the jurisdiction of the Bureau
The importer books a domestic trucker
The goods are advertised for auction
When are duty and tax due on imported goods?
Only after domestic sale
Upon importation, including goods previously exported from the Philippines, except as otherwise provided
Only when released from customs custody
Only when an audit is completed
Only for goods over a set value threshold
What is the stated legal interest on unpaid duties, taxes and other charges computed from the date of final assessment until payment becomes due and demandable?
10% per annum
12% per annum
15% per annum
20% per annum
25% per annum
Which statement best distinguishes Smuggling from Technical Smuggling as defined?
Smuggling involves erroneous declarations; Technical Smuggling involves prohibited goods only
Smuggling is the fraudulent act of importing or assisting in dealing with fraudulently imported goods; Technical Smuggling uses fraudulent or erroneous declarations to reduce or avoid taxes and charges
Both are identical in definition
Technical Smuggling is limited to exports; Smuggling is limited to imports
Smuggling pertains only to goods in free zones
Which scenario describes a Tentative Release?
Goods are released permanently after full payment
Goods are held indefinitely pending court order
Assessment is disputed and pending review, and the importer puts up a cash bond equivalent to the duties and taxes due to obtain release before final resolution
Goods are reexported without any bond
Goods are transferred from ship to ship within the same port
Which taxes are included under the term Taxes as used in the material?
Only customs duties
All taxes, fees and charges imposed under this Act and the National Internal Revenue Code of 1997, as amended, and collected by the Bureau
Only value-added tax on imports
Only excise taxes on petroleum
Only local government fees
When are imported goods subject to the applicable tariff heading that is effective for import duties?
At the date of importation or withdrawal from the warehouse for consumption
At the time the shipment is booked with a carrier
On the date the bill of lading is issued
Only upon resale in the domestic market
For goods withdrawn from free zones for introduction to the customs territory, when is the duty rate applicable?
On the date of original admission to the free zone only
On the date of withdrawal from the free zone
On the date the invoice was issued
On the date of final sale to consumers
In a customs public auction, which duty rate applies to the goods?
The rate at original importation
The rate on the date of the auction
The highest rate in the past six months
A special reduced auction rate
Which of the following is NOT listed as a possible declarant under the law?
The importer holding the bill of lading
The exporter owning the goods to be shipped out
A customs broker under authority of the importer
An auditor from the Department of Finance
If the consignee is a juridical person, who may sign the goods declaration as declarant on its behalf?
Only the company CEO
A responsible officer authorized by the company
Any employee with knowledge of logistics
A representative from the shipping line
During the two-year transition period from the effectivity of the Act, which subparagraph about declarants is not implemented?
Importer as declarant
Exporter as declarant
Customs broker under authority as declarant
Person empowered as agent or attorney-in-fact as declarant
Who is responsible for the accuracy of the goods declaration and for payment of duties, taxes, and other charges due on imported goods?
The Bureau
The shipping line
The declarant
The warehouse operator
What is the role of a licensed customs broker regarding the goods declaration?
Solely responsible for paying duties and taxes
Responsible for accuracy but not for payment of duties and taxes
Not involved in signing the declaration
Acts only as a witness
Under what condition will the Bureau impose penalties for errors in goods declarations?
For any error, regardless of intent
Only when errors are inadvertent and without negligence
To discourage repetition, provided penalties are not excessive
Never, penalties are prohibited
Which of the following actions shall the Bureau recognize or perform when prescribed requirements for electronic processes are met?
Reject electronic documents as unreliable
Transmit approvals only in paper form
Accept payments and issue receipts through systems using electronic data messages
Limit electronic communication to internal memos
What standard must the security of data and communication align with under the Bureau’s ICT application?
Only local standards set by the Bureau
Applicable local and internationally accepted standards on information security
The standards of the private vendor chosen
No formal standards are required
How should transactions directly handled by a party be treated compared to those through a designated third party?
More stringently
Less favorably
Equally, not less favorably or more stringently
They must be denied
What does the Bureau commit to publish under Information of General Application?
Only internal memos
All laws, decisions, rulings, circulars, memoranda, and orders in accordance with law
Only decisions that favor importers
Nothing, to protect confidentiality
What type of information may an interested party request under Information of a Specific Nature?
Any confidential internal data
Information relating to a specific matter not confidential or for internal use only
Only historical tariff rates
Only decisions already published
Within what period must the Bureau issue a ruling and decision after submission of necessary documents and information?
15 days
30 days
45 days
60 days
If the Bureau issues an adverse decision, what additional step must it take?
Provide reasons and advise the party of the right of appeal
Immediately impose penalties
Refer the matter to a court
Cancel the importation
Within how many days from receipt of the questioned decision or order may an adversely affected party file an appeal?
7 days
10 days
15 days
30 days
What may the Bureau allow regarding submission of supporting evidence for an appeal?
No additional time
A reasonable time
Only 24 hours
Only if fees are doubled
Which statement best defines Free Importation and Exportation under Section 116?
All goods may be freely imported and exported unless otherwise provided by law or regulation.
Only perishable goods may be imported without permits.
Goods can be imported freely only during a state of calamity.
Goods may be exported freely only if taxes are prepaid.
Under Section 117, what is required before importing or exporting goods that are subject to regulation?
Payment of customs duties only
Securing necessary goods declarations, clearances, licenses, and other requirements before importation or exportation
A sworn statement of good faith from the importer
A bond posted after release from customs
Which of the following is listed as Prohibited Importation and Exportation under Section 118?
Medicines approved by the Food and Drug Administration
Written or printed goods advocating treason or sedition against the government of the Philippines
Lottery tickets authorized by law
Gold bars properly stamped with accurate fineness
Section 119 describes Restricted Importation and Exportation. Which example falls under restricted goods unless authorized by law or regulation?
Toys for children
Dynamite, gunpowder, ammunitions and other explosives
Books on Philippine history
Agricultural seeds
Under Section 119, which statement about narcotics and synthetic drugs is correct?
They are freely importable if for personal use.
They are restricted unless imported by the government of the Philippines or persons authorized by the Dangerous Drugs Board for medicinal purposes.
They are permitted only if declared at the airport.
They are prohibited only during elections.
Which is one of the simplified customs procedures for relief consignments listed in Section 120?
Mandatory full examination of all packages
Lodging of a simplified or provisional goods declaration subject to later completion within a specified period
Release only after normal business hours
No document checking before arrival
What is the Commission mandated to study with respect to tariff policies and programs?
Their effect on government revenues only
Their impact on national competitiveness and consumer welfare
Their influence on foreign exchange rates exclusively
Their role in election cycles
Which task involves managing the Philippine tariff schedules and tariff nomenclatures?
Issuing advance rulings
Administering the tariff schedules
Conducting public hearings
Reviewing trade agreements
Which function includes providing the President and Congress with independent analysis and technical support on tariff and nontariff measures?
Public consultations
Adjudication of trade remedies
Policy support and guidance
Promotion of foreign trade
When analyzing the classification of goods, to which agencies must information be furnished according to the text?
NEDA, DTI, DA, DOF, DENR, and BSP
NBI, DOJ, DFA, and BSP
DOH, DepEd, DILG, and NEDA
BIR, BOC, DSWD, and DND
For disputes over tariff classification, to whom may the Commission deputize or delegate its function, subject to conditions on plantilla positions and a time limit?
Any private law firm
An appropriate government agency
Any international organization
A foreign customs authority
What power does the Commission have during investigations regarding documents and testimony?
Only request voluntary submissions
Summon witnesses, take testimony, administer oaths, and issue subpoena duces tecum for production of documents
Seize documents without process
Impose criminal penalties
Under the Flexible Clause, upon NEDA’s recommendation, which of the following is NOT among the President’s empowered actions?
Increase, reduce, or remove existing import duty rates within limits
Establish import quotas or ban imports of any commodity
Impose an additional duty not exceeding ten percent ad valorem on all imports
Unilaterally amend the Constitution to change tariff powers
What is the maximum increased rate of import duty allowed under the Flexible Clause?
50% ad valorem
75% ad valorem
100% ad valorem
150% ad valorem
Before recommending changes to the President (except for additional duty not exceeding 10% ad valorem), what must the Commission conduct?
A national referendum
An investigation and public hearings with reasonable opportunity to be heard
A joint session of Congress
A Supreme Court consultation
When modifying the form of duty under the Flexible Clause, what basis must be used for the corresponding ad valorem or specific equivalents?
Average global prices for the past decade
Imports from the principal competing foreign country for the most recent representative period
Domestic wholesale prices last year
Projected prices for the next fiscal year
In modifying import duties under trade agreements, what limitation must be observed according to Section 1609(a)?
Only the advice of the BSP
The requirements of Section 1608(a) on the Flexible Clause
A fixed 5% cap on duty changes
None; the President has absolute discretion
Under Section 1609(b), to which goods do the modified duties and import restrictions apply?
All goods from all countries
Only goods produced domestically
Goods that are the growth, produce, or manufacture of the specific country with which the Philippines has entered a trade agreement
Only goods imported by state enterprises
Which statement best describes Congress’s role regarding the delegated power under the Flexible Clause?
Congress must approve every presidential order
Congress may withdraw or terminate the delegated power through a joint resolution
Congress has no authority over delegated tariff powers
Congress directly sets all import quotas
Which statement best reflects the rule on packing materials and containers under the GRI?
They are always classified separately from the goods they contain
They are classified with the goods if of a kind normally used for packing such goods, unless clearly suitable for repetitive use
They are classified with the goods only when made of paper
They are subject to a flat 10% ad valorem rate regardless of classification
Which existing legal provision continues to apply and supplement the Act for tariff sections, chapters, headings, and subheadings and the rates of import duty?
Section 514 of Presidential Decree No. 1464
Section 104 of Presidential Decree No. 1464 (Tariff and Customs Code of 1978, as amended)
Section 1608 of this Act
An executive order issued by the Department of Trade and Industry
What additional duty is imposed on products of any foreign country that discriminates against Philippine export products?
An additional 10% duty on selected goods
A surcharge determined by NEDA
An additional 100% across-the-board duty
A temporary quota with no duty change
Which provision continues to apply and supplement the Act with respect to export products subject to duty and their rates?
Section 104 of Presidential Decree No. 1464
Section 1609 of this Act
Section 514 of Presidential Decree No. 1464 (Tariff and Customs Code of 1978, as amended)
A new schedule issued solely by the President
What is the official name of the committee established to monitor implementation under Title XVII?
Congressional Budget Review Committee
Congressional Customs and Tariff Oversight Committee
Joint Executive-Legislative Trade Council
NEDA Oversight Panel
Who composes the Congressional Customs and Tariff Oversight Committee as constituted by the Act?
Only the Secretaries of Finance and Trade
The President, the Senate President, and the Speaker
The Chairpersons of the Committees on Ways and Means of the Senate and House plus four additional members from each House designated by their respective leaders
Nine members appointed solely by the Senate
Which official is mandated to promulgate the necessary implementing rules and regulations for the effective implementation of the Act, and upon whose recommendation?
The Commissioner, upon the recommendation of the Secretary of Finance
The Secretary of Finance, upon the recommendation of the Commissioner
The President, upon the recommendation of the Secretary of Justice
The Speaker of the House, upon the recommendation of the Commissioner
What is the effect of the Transitory Provisions on suits or offenses arising before the effectivity of the Act?
They are dismissed automatically upon effectivity of the Act
They must be refiled under the new Act within a new prescriptive period
They proceed and are prosecuted in the same time and manner as if the Act had not been enacted
They are converted into administrative cases only
Which statement best reflects the Repealing Clause?
Only regulations are repealed; presidential decrees remain effective
Presidential Decree No. 1464 and Presidential Decree No. 1853 are expressly repealed, and other inconsistent laws, decrees, orders, rules, and regulations are repealed, amended, or modified accordingly
All prior customs-related statutes are preserved intact
Only provisions relating to letter of credit deposits are amended
